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VN property inventory drops to US$3.9b

Update: June, 21/2014 - 09:57
Many luxurious villas in the northern province of Bac Ninh's Nam Tu Son urban area have been empty for years. Viet Nam's real estate inventory has an estimated value of VND83.5 trillion (US$3.9 billion). — VNA/VNS Photo Hoang Lam

HA NOI (VNS)  — Viet Nam's real estate inventory had an estimated value of VND83.5 trillion (US$3.9 billion) by the end of Q2 2014, the Ministry of Construction announced.

This estimated value shows a reduction of VND526 billion, or 35 per cent, compared with the previous quarter.

Statistics from the ministry indicated that property inventory in the apartment segment was at 17,445 units, worth VND26.5 trillion ($1.26 billion), while that of low-rise apartments was 13,862 units, worth VND23.6 trillion ($1.12 billion). The inventory of residential land was 8.9 million square metres, worth VND28.8 trillion ($1.37 billion), and the inventory of commercial land was at 1.64 million square metres, worth VND4.5 trillion ($214 million).

HCM City saw the highest property inventory worth VND15.8 trillion, with 7,015 apartments accounting for VND12.1 trillion .

However, the ministry said the sales of apartments in District 7 and some other districts in the city had been positive in the first six months of this year, and this helped to reduce stocks.

Ha Noi took the second place on the list, with VND10.9 trillion , dropping VND2.06 trillion from the end of 2013, mainly in apartments inventory, with 2,644 units, worth VND2.96 trillion.

Low-rise apartments saw an inventory of 2,722 units, worth VND7.96 trillion. The ministry noted that the inventory of low-rise apartments in the capital has not been significantly reduced, and there is low liquidity due to the prevalence of suburban and unfinished projects that have no integrated technical and social infrastructure.

These could be named the Le Trong Tan new urban area in Ha Dong District, with an inventory of more than 2,000, and Gamuda-Yen So Park, with 300 low-rise apartments.

Slow disbursement

The ministry has revealed that only 7 per cent, or VND2.15 trillion ($101 million), of the VND30 trillion ($1.4 billion) housing package intended to help low-income earners buy houses has been disbursed after a year of implementation.

The disbursement was given to 5,368 home buyers and 19 housing projects.

It said the package's disbursement progress was improved over the first five months of this year as the total committed loans had increased by 225 per cent from VND1.76 trillion ($82.45 million) at the end of last year.

However, insiders say the progress has been too slow.

Nguyen Van Duc, vice chairman of the HCM City Real Estate Association, was quoted by Thoi Bao Kinh Te Sai Gon as saying that the disbursement of the inked loans had been slow because of the complicated loan application procedures and the lack of housing that meets government parameters.

Nguyen Hoang Minh, vice chairman of the State Bank of Viet Nam's branch in HCM City, told the newspaper that loan procedures had not improved much. He pointed out that although annual interest rates were reduced from 6 per cent to 5 per cent in January, the rate had remained high given the nature of the programme.

The loan package, which was launched last June, was expected to boost the recovery of the domestic property market by primarily targeting housing developers, low-income earners, and civil servants. — VNS

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